Local real estate market on upward trend

Graphic/ANDREW LILLY

That's the word from local Realtor Andrew Lilly, who gathers Multiple Listing Service statistics for the Union County Board of Realtors.

"To date, the local residential market has not been noticeably affected," Lilly, owner of Lilly Real Estate, Inc., said. "Foreclosures remain a very small percentage of the market and new construction has been confined mostly to pre-sold homes and built for owner homes."

Lilly said the local real estate market has been on a strong upward trend since 2004. A slowdown could be on the horizon, he said, but it may be delayed by fiscal policies designed to meet recession worries.

In a nationwide market characterized by housing surpluses, slow sales and foreclosures, several factors have combined to keep Union County's market strong.

"Mortgage interest rates have been at or near historical levels, making home ownership more affordable and further enhanced by creative mortgage products," Lilly said.

He also cited an influx of retirees locating from larger cities to rural markets like Union County.

"Speculation demand has been strong, with buyers accepting lower immediate returns and placing more emphasis on property value appreciation," Lilly added.

Tax deferred exchanges have also played a role in the marketplace, he said.

Homes on the local market are moving fast, according to Lilly's statistics. In 2000, the average time for a home on the market was 136 days; in 2004, it was 94 days, and in 2007 it was 47.

Prices have climbed steadily upward since 2000 as well.

In 2000, the average price of a home was $99,000. The figure rose to $104,000 in 2001, fell to about $101,000 in 2002 and 2003, and began rising again in 2004.

By 2007, average price of a home reached almost $153,000. That represents an increase of about 55 percent in the seven-year period.

Prices per square foot also follow a sharp upward trend since 2000.

In that year, the square foot price for a home built before 1950 was $67.92. For one built after that date, the square foot price was $76.38.

Again, prices were flat in 2002-2003, but started to climb in 2004. By 2007, homes constructed before 1950 were going for $122.33 per square foot. The square foot price for homes built after 1950 was $110.71.

Since 1988, square foot prices for Union County homes have risen from about $27.

Lilly said the Union County MLS presently shows 72 listings, and that sales are averaging about 15 a month. Those figures suggest sufficient inventory for about the next five months.

"That is considered to be a reasonable supply for this time of year and given the fact that some properties linger on the market due to overpricing," Lilly said.